BOARD OF DIRECTORS MEETING

MANAGEMENT REPORT and AGENDA

Monday April 25, 2016 at 7:30PM

2nd Floor Party Room

OWNER FORUM – 7:30pm – 15 minutes, 2 minutes per person

The Board and Management will address questions and feedback from owners present.

OPEN SESSION – Call to Order

Please be courteous – no audience participation is permitted.  Speakers will be recognized by the Meeting Chair.

Roll Call – Confirm Quorum

The Board President will call the meeting to order and confirm a quorum of members is present in order to conduct business.

Committee Reports

Committee Chairs and Members will be welcome to present reports and update the Board on business and activities.

Board Report

Board President George Pauley may update the Board and Owners on Association business and activities.

Action Items – New Business

Closed Session Business

This agenda item is provided for any resolutions to propose resulting from Closed Session discussion.

Minutes – Board Meeting March 28, 2016

Attached for Board of Directors review, are the proposed minutes from the Board Meeting held on Monday March 28, 2016, submitted by Timothy Patricio, Property Manager.

A sample motion follows: “I move the Board of Directors approves the minutes from the Board Meeting held on Monday March 28, 2016.”

Green Commission Charter

The Green Commission held its first meeting on April 13, 2016.

Attached to the report for Board review is a copy of the charter they have recommended for Board approval.

A sample motion follows: “I move the Board of Directors approves the proposed charter for the Green Commission as recommended by the Commission.”

Green Commission Chair

The Green Commission nominated Unit Owner William Kay as Chair.

A sample motion follows: “I move the Board of Directors appoints Unit Owner William Kay as Chair of the Green Commission.”

Health Club Memberships

Both the Health Club Committee and Budget & Finance Committee agreed upon a way to approach the cost of memberships in lieu of the previous proposal to offer a 13^th month free.

That is, for upcoming Open House events they are planning, they will advertise a pending increase of 10% in rates targeted for consideration September 1st. For neighboring buildings 5445 and 5455 the premium they pay over base rates would increase from 15% to 25%. New members and existing members would be encouraged to join in advance of the rate adjustment.

The Health Club Committee formally recommends this. We are aware the Budget Committee supports this plan after discussion at their April 6^th meeting, but have not formally voted. I spoke to the Committee Chair who said due to the timing of the Open House Events planned for mid-June, the Board should consider voting without their formal approval so the plan can proceed.

He also mentioned he planned to poll the members of the Committee in advance of the Board Meeting, and will report the results to Management and the Board.

A sample motion follows: “I move the Board of Directors approves an increase in Health Club Membership rates by 10% for all membership types, effective September 1st, and adjusts the premium paid by members from neighboring buildings from 15% to 25%.”

Budget & Finance Committee Recommendations

1. At their April 6^th Meeting, the B&F Committee recommended the Chiller Tear Down Project, (approved by the Board at the March 14^th Board Meeting but not previously budgeted) be financed as a capital reserve item.

A sample motion follows: “I move the Board of Directors approves the Chiller Tear Down project in the amount of $70,620 be financed as a capital reserve project.”

2. For the purpose of advising the Association’s auditor, at their April 6^th Board Meeting, the B&F Committee recommended that any audited surplus of Operating Funds from the 2015/2016 fiscal year, be transferred to the capital reserve to help finance future projects. At the end of February 2016, the financials reported an unaudited surplus of $137,000. They point to the Chiller Tear Down project as evidence these funds are needed for the reserve.

A sample motion follows: “I move the Board of Directors approves that any audited surplus of Operating Funds from the 2015/2016 fiscal year be transferred to the capital reserve fund.”

Unit Owner Request – Rental Exception

Attached to the report for Board Review, is a request for the Board to grant a waiver from rental restrictions to the Owners of Unit 4201. The Board has the discretion to waive the rental limit if they believe there is a reasonable hardship or justifiable purpose for an exception.

A sample motion follows: “I move the Board of Directors grants the rental exception request for the Unit Owners of 4201.”

Business Reports

1. Treasurer’s Report

Fund Balances End of March 2016

Operating Funds $398,783 (decrease of $211,524 from February)

Reserve Funds $1,611,669 (increase of $47,540)

Total Cash and Investments $2,010,453 (decrease of $163,983)

Total March Income: $461,041

Total March Expenses: $368,132

Income From Garage: $28,849

Contribution To Reserve: $122,742

Total Surplus or (Deficit): $(984)

CD Transactions:

Measures management took with recent Certificates of Deposit require ratification by the Board. Attached for Board review are copies of memos from Draper and Kramer with details of the bank activity.

A two year CD with Bridgeview Bank, $90,000 with a 1.25% yield, was purchased for investment for the Operating Contingency Fund:

A sample motion follows: “I move the Board of Directors approves and ratifies the purchase of a $90,000 CD with Bridgeview Bank for the Operating Contingency Fund, scheduled to mature on March 31, 2018.”

An eighteen month CD with International Bank of Chicago was renewed, $162,574.98 with a 1% yield, for the Capital Reserve Fund:

A sample motion follows: “I move the Board of Directors approves and ratifies the renewal of a $162,574.98 Certificate of Deposit with International Bank of Chicago for the Capital Reserve Fund, scheduled to mature on September 25, 2017.”

A two year CD with Bridgeview Bank, $150,000 with a 1.25% yield, was purchased for investment for the Capital Reserve Fund:

A sample motion follows: “I move the Board of Directors approves and ratifies the purchase of a $150,000 Certificate of Deposit with Bridgeview Bank for the Capital Reserve Fund, scheduled to mature on March 28, 2017.”

2. Management Report

a. Business and Activities

b. Monthly Activity Report

c. Sales Report

 ADJOURNMENT

There being no further business, the Board will consider adjourning the meeting.

A sample motion follows: “I move the Board of Directors adjourns the April 25, 2016 Board Meeting a_ _ PM.”

OWNER FORUM – 15 minutes, 2 minutes per person

There is a Unit Owner Forum meeting on Wednesday May 4^th at 7pm in the Party Room.

The next meeting date is Monday May 9th at 7:30pm in the Party Room.